- Etherisc, a decentralized insurance platform, integrates Chainlink oracles “for decentralized flight insurance products.”
- The project aims at minimizing trust on a peer to peer platform to reduce information asymmetry in flight insurance.
- Can LINK breach the $3.50 key resistance level in coming weeks?
An official report released by Etherisc, a blockchain based platform on flight insurance, confirms the integration of Chainlink oracles to improve on inefficiencies in the decentralized flight insurance industry. The addition of Chainlink oracles to Etherisc is set to narrow the information asymmetry in the fight insurance industry, digitize the claiming processes and reduce disagreements between the insurance companies and claimants.
Etherisc leverages Chainlink oracles
In a world crippled with information asymmetry, increased costs from manual verification, extensive processing time and cost of claims, and a general distrust between issuers and policyholders, blockchain technology provides cheaper solutions in the flight insurance industry.
“Chainlink is a decentralized oracle network that gives smart contracts secure and reliable access to data providers, web APIs, enterprise systems, cloud providers, IoT devices, payment systems, other blockchains and much more.”
The blockchain also allows other platforms to customize their smart contract to retrieve data from “off chain oracles” in different levels of decentralization. This is where Etherisc benefits from Chainlink.
Together with @etherisc, we're proud to announce we have a working decentralized flight insurance POC live on Ethereum testnet. The design incorporates reliable flight status data (delayed or on-time) delivered by Chainlink's decentralized oracle network. https://t.co/saU3smevkn
— Chainlink – Official Channel (@chainlink) February 6, 2020
The Proof of Concept (PoC) system
According to the report, Chainlink nodes will be used in a proof of concept (POC) system to fetch data from various trusted web APIs for flight status data. An illustration is embedded in the tweet below.
The report further states,
“In our POC, multiple Chainlink oracles retrieve data about whether or not the flight was delayed using an external adapter for the Flightstats API.”
— GreenSockMonkey 🙊⬡🦆 (@GreenSockMonkey) February 6, 2020
Using the Chainlink oracle system allows the policyholders to be sure of quick access to flight insurance and with certain pre-conditions met, will receive their claims on the spot. Furthermore, insurance companies are able to reduce costs by using decentralized systems, which digitizes the manual claiming process hence reducing the workforce needed to file claims.
Chainlink targets $3.50 amidst rapid adoption
The rapid adoption of Chainlink (LINK) over the past year or so set the project on a magnificent uptrend that saw the crypto breach the $4 dollar mark to set an all-time high in July 2019. So far, the coin has gained over 60% in 2020 alone, to trade at $3.001 USD, as at time of writing.
With Etherisc the latest partner to integrate the blockchain, oracle based platforms such as Chainlink shows much promise in connecting decentralized systems to the real world. As LINK gains utility from traditional-based industries, the token may well be in contention for a further 20% increase to $3.50 USD in the coming days.
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Been in the field since 2015 and he still love everything blockchain and crypto! FC Barcelona fan. Author and journalist. Follow him at @lujanodera.